Secrets of power negotiating - roger dawson Flashcards
Win Win Myth
A power negotiator’s objective is to make the other side permanently feel that they have won.
“Flinch at proposals”
When the negotiation is over, the power negotiator can say confidently that a relationship has been established or improved with the other side
Gambit definition
Power negotiating is like playing chess. You play according to a set of rules called Gambits
Beginning negotiating gambit 1: Ask for more than you expect to get
Your asking price should be your maximum plausible position (MPP). Your MPP is the intersection of two factors, the most you can ask and the other side’s belief in the plausibility of your position. In some instances your MPP should be higher than you would otherwise prefer. Your MPP should be higher when you know less about the other side for two reasons:
- First, you may be off in your assumptions about them.
- Second, if this is a new relationship, you will appear more cooperative if you make larger concessions.
Beginning negotiating gambit 2: Never say “yes” to the first offer
Saying “yes” to the first offer triggers two responses in the other person’s mind: “I could have done better” and “Something must be wrong.”
Beginning negotiating gambit 3: Flinch at proposals
You should appear shocked by the other side’s proposal. The other side is watching you for your reaction. Body language is critical here because most people believe what they see more than what they hear. If you do not flinch, then the other side will assume that what they offered is a possibility. Conversely, a concession often follows a flinch because it is a sign that you are negotiating.
Beginning negotiating gambit 4: Avoid confrontational negotiation
Arguing in the early stages of negotiation creates confrontation. Confrontation tends to lead to early deadlock. Instead of arguing, try the “feel, felt, found” formula whenever your counterparts throw unexpected hostility your way during a negotiating session:
- The first step is to acknowledge how the other side feels about the situation.
- The second step is to state that many others have felt the same way.
- The final step is to state, “We have found that…”
Beginning negotiating gambit 5: The reluctant seller and the reluctant buyer
The reluctant seller is the person who says, “I never considered selling this boat.” The reluctant buyer is doing the same thing, only in reverse. This gambit squeezes the other side’s negotiating range before the negotiation even starts. This is a particularly powerful tool when you are desperate to sell.
Beginning negotiating gambit 6: The vise technique
This technique is deployed with the expression, “You have to do better than that.” The technique is then followed by silence. Inexperienced negotiators will give away a significant portion of their negotiating range when they are confronted with the vise technique. Look for negotiated dollar concessions here, instead of percentages or gross amounts. Remember, a negotiated dollar is a bottom-line dollar.
If you find that this technique is being used on you, respond with the counter gambit, “How much better do I need to do?”
Middle Negotiation Gambit 1 Countering the authority dodge
The most frustrating experience you will have as a power negotiator is negotiating with people who claim that they don’t have the authority to make a final decision. This tactic is designed to pressure you to commit to better terms because of your insecurity about the veto power of the “higher authority.” This gives people using the dodge more breathing space because it delays a decision for as long as it takes to review the negotiations. You can counter this with the following gambits:
- First, remove the person’s ability to use higher authority before you make your proposal. Car dealers do this all the time when they say, “Is there any reason we can’t do business today?”
- If you cannot remove the higher authority, then appeal to the egos of the people you are facing. Ask them to agree to take it to the higher authority with a positive recommendation. Either they will agree or they will say no. In the latter case, you will learn what the potential objections are to your proposal. Either way you will be closer to acceptance than if you don’t do anything to counteract their claims regarding an absent decision-maker.
Middle Negotiation Gambit 2 The declining value of services
The key to this gambit is that the value of services goes down with time. Therefore, never make a concession and trust that the other side will make it up to you later. Negotiate the value of the concession today.
Middle Negotiation Gambit 3 Never offer to split the difference
Splitting the difference is perceived as being the fair thing to do. It is not. Remember that a dollar earned in a negotiation is a bottom-line dollar. Instead, encourage the other person to offer to split the difference. This will move the other person’s range higher. For instance, if you offered to do a remodeling job for $30,000 and the buyer offered to pay you $26,000 for the job, by getting the buyer to offer to split the difference you have moved the range for the job from $26,000-$30,000 to $28,000-$30,000. At this point, you can appeal to your higher authority and try to get them to split the difference for the new range or you can reluctantly agree to split the difference of the old range.
Middle Negotiation Gambit 4 The set-aside gambit
Use this to handle an impasse, a point at which both sides are in complete disagreement over one issue. Ask the other side to set this issue aside while the negotiations continue on remaining issues. An example is a buyer says to you, “We are willing to talk to you, but you must have a prototype ready by the first of the month or let’s not waste time talking.” You can respond by saying, “I understand how important that is to you, but let’s set it aside for a minute and talk about other issues.”
Middle Negotiation Gambit 5 Change an element of the negotiation
Use this to handle a stalemate, when both sides are still talking but no progress is being made. The most important thing you can do under these circumstances is to change one of the elements of the negotiation. For instance, change the people on the negotiating team.
Middle Negotiation Gambit 6 Go for help
In a deadlock, both sides are so frustrated that further discussion appears pointless. True deadlocks require third-party intervention to get the negotiations going again. If you have a deadlock, you need to bring in a mediator or an impartial arbitrator.
Middle Negotiation Gambit 7 Always ask for a trade-off
This gambit applies to all concessions no matter how large or small. By asking for something in return, you accomplish two very important objectives:
- First, “You elevate the value of the concession.”
- Second, you stop the grinding away process used by some negotiators.
